Profitability / Energy Efficiency Improvement

By Jerry Lacatena

Every facility owner is very interested in maximizing their profits. With
energy consuming a substantial portion of a petroleum refinery’s or
petrochemical plant’s operating costs, the range of effort required to
address this can vary significantly. At Carmagen Engineering, Inc. (CEI),
we’re committed to the cause of improving energy profitability/efficiency
in a cost effective manner. We typically advise our clients not to jump
into time and resource-intensive programs head first, but rather to take a
phased approach. We first focus on a few major opportunity areas based on
our experience to reap the “low cost/no cost” opportunities first, and
also identify/prioritize areas that are worthwhile for more detailed
analysis.

Our program is delivered through a streamlined four-step process utilizing
a team led by an energy management expert, supported by a fired equipment
or heat exchanger specialist if needed. Client participation throughout
the process is a key ingredient to its success, while at the same time
increasing the capabilities of client staff. The four steps are:

SCOPE: This first step sets the stage by quantifying
expected results, and then defining the scope, objectives, boundaries,
constraints, plans, and schedule for the next steps. Quite often,
immediate action can be taken on some items identified in this first step
and begin seeing benefits, which also help fund subsequent steps.

ASSESS: Identifying and sharing Best Practices and Key
Performance Indicators (KPI’s) represent the heart of both the four-step
process and the crucial Assessment Step. We will help the client focus
attention on areas identified in Step One that represent the greatest
opportunities. These typically include:

PLAN: In Step Three, engineers assist the plant in the
preparation of a high-yield implementation plan that is built on the
portfolio of attractive opportunities identified in the assessment step.

Set priorities by comparing savings to estimated costs for each
opportunity identified in Step Two

Package results, review with plant management, and gain approval
to proceed with the implementation of operational improvements and
potential facility modifications

IMPLEMENT: While consulting assistance may continue
through implementation, our engineers turn over leadership to the client’s
organization at the beginning of Step Four, when they:

Support plant management to develop performance metrics, targets,
and milestones against which to gauge implementation progress

The level of effort required depends on the complexity of the systems
involved. Once this initial phase is done, the path forward depends on the
findings, technical issues, extent of options, and justification to pursue
investigations in a more detailed manner. This may involve:

Use of more sophisticated and focused energy optimization/studies

Development of specialized optimizer tools/software

Address significant technical issues, such as fouling or other
factors

Feedstock variation and product slate considerations

More effective operations and procedures

Address conceptual estimating costs of options for evaluation

Assist in the development of capital improvements/design
modifications tailored to meet specific objectives

A subsequent newsletter article will discuss an example of an energy
efficiency improvement study that was done for a client in the Far East.